Topic: How To Invest

Dividend Advisor Hotline – Friday, October 6, 2023

Article Excerpt

FINNING INTERNATIONAL INC., $36.86, Toronto symbol FTT, is a buy. The company sells and services Caterpillar-brand heavy equipment in Western Canada, South America and the U.K. With the June 2023 payment, Finning raised your quarterly dividend by 5.9%, to $0.25 a share from $0.236. The new annual rate of $1.00 yields 2.5%. The company has now raised the annual dividend rate each year for the past 22 years. Finning continues to benefit from a plan to expand its product support and maintenance operations, which now account for 57% of its total revenue. The company also expects revenue from this business to increase 7% annually through 2025. Demand for new and used equipment also remains strong due to new mining and energy projects in Canada and South America. Moreover, government plans to increase the supply of housing units in Canada will also spur demand for its construction equipment. At the same time, Finning also continues to cut its operating costs. In fact, it has reduced sales, general…